Most Gambling-Addicted States

Apr 23, 2019 | Adam McCann, Financial Writer

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Gambling exists in every state, even Hawaii and Utah, where gambling is prohibited by law. But not all gamblers are the same. “Recreational” or “social” gamblers, for instance, buy the occasional lottery ticket, take the rare casino trip or bet small stakes in fantasy sports. But they also are mentally able to quit at any point and prevent catastrophic financial loss.

But when the business or pleasure gets out of control, gambling becomes a real medical condition. Gambling disorder, as it’s known, affects about 1-3 percent of all U.S. adults. According to the Mayo Clinic, “Gambling can stimulate the brain's reward system much like drugs such as alcohol can, leading to addiction.”

That addiction can lead to serious economic consequences. For example, U.S. consumers experience over $100 billion per year in total gambling losses. Individually, a male gambling addict accumulates an average debt of between $55,000 and $90,000 whereas a female averages $15,000. Most cannot afford to pay back what they owe. As a result, gambling addicts develop a high tendency to amass even more debt, suffer from other health issues, lose their jobs, strain their relationships or even commit crimes.

The gambling problem, however, is much bigger in some states than in others. WalletHub therefore compared the 50 states to determine where excessive gambling is most prevalent. Our data set of 20 key metrics ranges from presence of illegal gambling operations to lottery sales per capita to share of adults with gambling disorders. Read on for our findings, insight from a panel of researchers and a full description of our methodology.

Ask the Experts

Over the years, more advanced technology has paved the way for new forms of gambling, such as iGaming, online fantasy sports and video poker. And while the estimated $261 billion gaming industry is no doubt a major contributor to the U.S. economy, its critics argue that gambling leads to social and economic problems, including gambling disorder and regressive taxes in areas where gambling facilities are present. For more insight, we asked the following key questions to a panel of gaming-industry experts:

Should sports betting be legal in all states? What are its pros and cons?

Should daily fantasy sports be regulated as gambling?

On balance, are state lotteries a good idea? Is there a way to make them less regressive?

What are the signs someone is addicted to gambling? What should friends and family do to help?

Methodology

In order to determine where gambling addiction is most prevalent and harmful in America, WalletHub compared the 50 states across two key dimensions, “Gambling-Friendliness” and “Gambling Problem & Treatment.”

We evaluated those dimensions using 20 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest dependency on gambling.

We then determined each state’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Statewide Self-Exclusion Statute: Full Weight (~3.00 Points)Note: This binary metric measures the presence or absence of self-exclusion policy in a state.
Self-exclusion (or self-banning) is a voluntary process where a person with a gambling concern excludes themselves from areas of specific gambling venues, or online providers.
It can provide a concrete tool to help keep you safe from excessive gambling.

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, American Gaming Association, RubinBrown, National Council on Problem Gambling, North American Association of State and Provincial Lotteries, Federal Bureau of Investigation, Pew Charitable Trusts, Legal Sports Report, Gamboool, Google Ads, Gamblers Anonymous and Virginia Commonwealth University’s Dr. Jay S. Albanese.

Image: Nejron Photo / Shutterstock.com

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